Author: Krishnan SRINIVASAN
Verifier: Albert SUTANTO
Photo by Gustav Gullstrand on Unsplash
In the evolving landscape of global sustainability, three significant developments are making headlines. Brendan Spellacy, CEO of Patch, has called on the Science Based Targets Initiative (SBTI) to expedite their guidelines for Scope 3 emissions. Meanwhile, Neste has partnered with Mitsubishi Corporation to enhance Japanese supply chains, aiming to replace fossil fuel-based materials and drive sustainability across key industries. Additionally, Microsoft has entered a 6-year agreement with The Next 150 to purchase 95,000 tons of biochar-based CO2 removal credits, demonstrating a commitment to scalable carbon removal solutions. These initiatives underscore the critical role of innovative strategies and collaborations in advancing global sustainability efforts.
Patch CEO Urges SBTI to Accelerate Offsetting Guidance for Corporate Supply Chains
Brendan Spellacy, CEO of the voluntary carbon market Patch, has called on the Science Based Targets Initiative (SBTi) to speed up their new guidelines about Scope 3 emissions. In an open letter, he said that doing this before late 2025 could create a “legacy of delaying climate action”. He also emphasized the need for guidelines on the use of high-quality carbon credits in Scope 3 reductions and argued that it’s too long given the situation with the world’s climate crisis.
Spellacy proposed moving the deadline up by a year to release the guidance by the end of 2024. One major obstacle to corporate investment in climate solutions is said to be uncertainty over how carbon credits can be used for Scope 3 emissions.“ According to our interaction with more than 500 corporate customers globally, this ambiguity has stopped companies from supporting essential climate solutions”, Spellacy quoted.
The SBTI is revising its Net Zero Standard, including rules for using carbon credits to meet corporate value chain emissions targets. Such an amendment has caused heated discussions within the organization and wider green economy about the role of carbon credits in corporate supply chains. In April, the SBTI's Board proposed extending the use of "environmental attribute certificates," including carbon offsets, to count towards these targets. This proposal faced criticism from charities, non-profits, and internally, leading to the resignation of SBTI CEO Luiz Amaral.
Despite these controversies, the SBTI plans to conduct an extensive consultation process before finalizing any changes. Supporters argue that by creating an open and high-quality carbon market, it will foster investment in carbon removal and nature projects while also assisting companies to tackle hard-to-abate emissions. In contrast, some people believe that making rules on carbon credits more lenient could bring down direct emissions mitigation efforts and that the current voluntary carbon market often fails to deliver meaningful climate action.
Neste and Mitsubishi Corporation form a strategic partnership to drive renewable chemicals and plastics in Japan.
Image by: Waewkidja on Freepik
Neste has partnered with Mitsubishi Corporation to improve the Japanese brand's sustainable supply chains focusing on industries such as food and beverage, apparel, and consumer electronics. This strategic collaboration aims to drive the adoption of renewable chemicals and plastics in Japan.
The overall objective is to achieve “defossilised” supply chains through replacing fossil fuel-based materials with renewable alternatives across the production process. On one hand, Neste’s expertise in sustainable materials including bio-based Neste RE™ for plastics production will add value while Mitsubishi Corporation’s vast experience in business expansion and petrochemical supply chain management within the region would be critical.
By combining their strengths, Neste and Mitsubishi Corporation offer a comprehensive solution for Japanese brands seeking to reduce their environmental footprint. This partnership provides access to sustainable materials and the knowledge required to integrate them into supply chains, simplifying the transition towards more sustainable practices and promoting sustainability in key industries.
Microsoft Partners with The Next 150 for the purchase of CO2 Removal credits
Image by: Tawanza Razika from Pixabay
The Next 150, a carbon removal company, has entered into a 6-year agreement with Microsoft to provide 95,000 tons of high-quality Carbon Dioxide Removal (CDR) credits. These will be generated at The Next 150’s General Biochar Systems (GBS) division in their biochar plant located in Guanajuato, Mexico. This development positions them as one of the leading providers within the emergent biochar industry.
Unlocking Carbon Removal Potential
Biochar Carbon Removal (BCR) refers to the process through which biomass is converted into biochar via pyrolysis in a high-temperature and oxygen-deprived environment. CO2 is retained by biochar very efficiently for long periods. Biochar has multiple applications in carbon removal as recognized by the World Economic Forum. However, a lack of awareness coupled with high production costs has impeded its growth as an industry. BCR credits are thus the answer because they offer financing solutions that bridge these gaps and raise consciousness about these initiatives making them commercially viable.
This means that not only does BCR provide environmental advantages but it also promotes climate justice by channelling mitigation benefits towards areas most affected by climate change. It was not until late 2022 when The Next 150 began its journey with biochar after setting up its first-ever biochar manufacturing facility, General Biochar Systems in Mexico. By October 2023, the project integrated biochar into state-run quarry rehabilitation efforts to restore degraded landscapes.
The ongoing initiatives aim to provide biochar to up to 23,000 local farmers, enhancing soil quality and agricultural productivity while reducing reliance on chemical fertilizers. Over the next decade, the project aims to capture 150,000 tons of CO2 equivalent, marking it as the largest biochar initiative in Mexico.
By mid-2024, The Next 150 will deliver high-quality BCR credits on the Puro.Earth registry, with plans for two more plants in Latin America by 2025. This agreement with Microsoft, along with a similar deal with Shell, underscores the growing commitment to scalable carbon removal solutions.
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